Wolfspeed Inc. experienced a significant drop in its stock price, falling over 45% on March 28, 2025, and reaching its lowest level since 1998. The decline, which saw the stock down 41.17% at one point, was not attributed to any specific news catalyst, leaving traders and investors searching for reasons behind the fall. Speculation emerged that Wolfspeed might have lost funding from the CHIPs Act, contributing to the stock's sharp decline. Additionally, the company announced the resignation of its CEO, Thomas Werner, who will be succeeded by Robert Feurle as of May 1. This leadership change occurred amidst reports that Wolfspeed failed to reach a debt-swap deal with noteholders and had to cleanse previously restricted parties. The stock was down 50% at one point, reflecting concerns over the company's financial health, including issues with 2L converts and customers taking on 3L debt. Amidst the turmoil, Wolfspeed issued a press release confirming it had received a $192 million IRS tax refund under Section 48D, with expectations of receiving up to $1 billion in total. The company also reaffirmed its fiscal 2025 guidance and stated it would end the quarter with a strong cash position, despite the ongoing capital structure discussions. Additionally, there was significant trading activity with 15K June $2 puts being bought, indicating further bearish sentiment among shareholders.